BusinessAnalysis

Are you eroding value through low productivity?
How to enhance bottom-line profits through Operational Efficiency Improvement

ACHIEVING PRODUCTIVITY
IMPROVEMENTS THAT STICKS

Today many organizations are looking to improve profitability by not only
focusing on increasing revenue, (which is getting more difficult in these
tough economic times) but by squeezing that last drop of
“production efficiency” from their day to day Operations.
The challenge has always been to make such improvement gains “stick”.

This paper outlines a proven way on how to achieve this.     

THECHALLENGES

Operations are the heart of most businesses. This is where the “rubber meets the road.” All the promises
made to customers and shareholders can be fulfilled or destroyed in Operations. Although what needs to be
done here might appear straight forward, it is an area fraught with many challenges and unfulfilled expectations:

  • Inconsistency of product or service offerings
  • Waste, activities or resources that do not add value to an external customer
  • Failure to consistently meet delivery schedules, mounting backlogs,
    high Turn Around Times (TAT)
  • Poor quality of final product
  • Poor resource and capacity planning
  • Low Customer Satisfaction Levels

If managers do not manage the above then they find themselves
in a never ending spiral of “chasing their tails.”
Throwing additional resources to the problem appears to
make things worse. The end result is low staff morale as it
appears to them that they never win. Senior executives looking
to reduce expenses look to this struggling environment to cut costs.
An Operation is always expected to do more with less.
The end result is usually an unhappy customer who leaves
for a competitor who might not even be better than us.

THESOLUTION

The solution lies in making effective changes in how the operation environment is run by focusing on Performance Improvement. The science of improvement is actually based on making informed and intelligent change. All improvement will require change, but not all change will result in improvement.

BPM IS INCREMENTAL

One of the core advantages of BPM is that it need not require you to conquer all problems
at once in order todeliver results. Rather projects can start small, while still making a large impact.
As management sage Peter Drucker observed in his seminal work Management Challenges for the
21st Century, “Continuous process improvements in any one area eventually transform the business.
They lead to innovation. They lead to new processes. They lead to new business.” BPM is Measurable

BPM is unique among technology-based initiatives in its ability to incorporate metrics and
measurement parameters at the outset of the project and to automatically capture and
track them along the way. BPM presents the opportunity for an immediate and material
impact on business performance and visibility.

BPM IS REPEATABLE

BPM presents a compound benefit where the skill set and
competencies gained from the first process deployed can be
leveraged to automate and improve multiple processes throughout
the organization for years to come.

The use of Business Process Management (BPM) principles is a tested way of achieving operational efficiencies.

There are three fundamental characteristics of BPM that make this intervention The game changer:

WHAT TO DONEXT?

Call Brian Kanyangarara of Holon Management

Consulting (Pty) on

+27 82 881 2306

------- OR -------

email him on

brian@holonconsulting.co.za.

Brian will be happy to meet with you to
evaluate your challenges and quickly work out if
there is value in the BPM intervention
for you and your organization.

Do not wait every day of
operating under the
status quo is more
profits lost.

A SYSTEMATIC AND PHASED APPROACH

PHASE 1

  • Understanding of current processes
  • Understanding the work breakdown structure
  • Interrogating the organizational design of the section
  • Interrogating the current and future metrics
  • Quantifying the magnitude of opportunity for improvement
    (Business Case)
  • Design improvement programme
  • Generating excitement and desire for change

PHASE 2

  • Validating findings and increasing precision
  • Implementing the recommendations
  • Communicating the need for change throughout the Organization
  • Utilising analysis tools
  • Designing the new “To Be” solutions
  • Implementing “To Be” solutions
  • Culture Change Programme

PHASE 3

  • Metrics and measurement
  • Process enhancement
  • Harvesting the gains
  • Process Maturity

CONCLUSION

There is “light at the end of the tunnel.” A proven systematic way of overcoming
seeminglyinsurmountable problems in operations exists. This solution can be
tailored to suit a small scale intervention with significant results or an enterprise
wide approach that covers all departments.

The benefits are significant and at times revolutionary.
Make a name for yourself and your organization.